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What is the meaning by Tax in supplier invoices ? Does it differ from country to another ? what is the way of handling TAX suppliers in other country ?

Please tell us the types of TAX and the way of calculations from country to another .

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Question added by khaled Ibrahim Sayed Abd El Salam Ibrahim , Chief Accountant , -ElMehy engineering company
Date Posted: 2013/12/07
khaled Ibrahim Sayed Abd El Salam Ibrahim
by khaled Ibrahim Sayed Abd El Salam Ibrahim , Chief Accountant , -ElMehy engineering company

I can say about egypt we have a lot of TAX , Most common three are :_  AP called With Holding TAX , AR called Sales Tax , Payroll

Social TAX.

Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

Tax in supplier invoices is mostly Sales Tax or VAT. It differes from country to country. It is mostlu used in Input Output scenario. There is no single answer to your question.

However in the context of Indian Subcontinent (Pakistan, India, Bangldesh), below is the short mechanism of sales tax on import and exports:

 

If a supplier charges sales tax or VAT from a foreign a country then at the time of clearance a tax is imposed which is called sales tax at import stage. Such tax is mostly adjustable and adjusted against output sales tax liability of the seller/manufacturer.

 

In case of exports, input charged by local supplier on raw material such input is reimbursed by the government as tax refund. This sector of export is often referred as ZERO-RATED Sector.

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